Develop a logistic model to reduce transportation costs
A logistic model to service all types of entities in the cash supply chain by using the same dedicated vehicles.
1. Problem Statement
- Individual vehicles are used to service Branches, ATMs and Retail Customers, this leads to inefficient vehicle movement as multiple vehicles stop at locations in close proximity;
- A transportation model that uses a single vehicle to service Branches, ATMs and Retail Customers must be investigated as it is expected to reduce the transportation costs in the supply chain.
- A costing model to calculate the costs for the various CIT servicing types is required.
2. Solution Approach
- Identify potential cost saving locations based on:
- Transportation costs;
- Distance to service centre;
- Transactional volumes;
- Density (number of entities in the area);
- Build a simulation model to represent logistics (using a dedicated vehicle);
- Feasibility study to compare the current logistics model (scheduled services) to the future logistics model (dedicated vehicle);
3. Project Outcomes
- Defined a logistics model to service cash centres, branches and ATMs with the use of dedicated vehicles;
- Costing model for CIT when types of services are combined;
- Engagement with multiple service providers to obtain best tariffs;
- Requirement to operationalise the logistics model per area (vehicles, sorting capacity etc.)
- Operational targets (time, sorting, kilometers, fixed and variable costs etc.)
- Up to 30% saving on transportation cost (depending on area configuration) to provide the same service level;